** OPTION TRADE: Buy the AMD
APRIL 21 2017 14.000 call at approximately $0.75. Place a pre-determined sell
at $1.50.

Note: No protective stop losses
added -- but if you wish to do so make it $0.30.

Also Note: This is a recommendation and individual
members can use their own discretion as to when to enter or exit!

by Ian Harvey

Advanced
Micro Devices, Inc. (NASDAQ:AMD), a global
semiconductor company, stock price rallied in the last twelve months, surging
from a 52-week low of $2 a share in the beginning of FY2016 to the highest
level in the last eight years. AMD stock is currently standing just below its
8-year high of $15.55 per share, while several analysts see further upside in
the coming days. Top hedge funds & private equity firms are betting big on
this stock… which could be one of the biggest trades of 2017.

AMD has been enticing investors with its
innovative technologies and strong financial results. In the latest quarter,
its revenue increased 15.9% to $1.11 billion over the same period last year,
beating the consensus estimate by $40 million. The strong growth in revenues
was driven by its product innovation and regaining the share in key markets.
Advanced Micro Devices cash and cash equivalents also increased $6 million to
$1.26B over the previous quarter.

Its CEO said, “As we enter 2017, we are
well positioned and on-track to deliver our strongest set of high-performance
computing and graphics products in more than a decade.” In the latest quarter,
it’s computing and graphics segment increased 28% to $600 million, thanks to
higher GPU and client processor sales.

Therefore, the company is set to generate
17% sales growth in the first quarter this year, compared to the same period
last year. In addition to strong growth in revenues, AMD’s cash generating
potential will also strengthen, allowing investing in growth opportunities.
Overall, despite a sharp rally in the last twelve months, AMD stock price has
further upside in the coming days.

Independent securities and investment
banking firm Jefferies has set a price target of $16 for AMD's stock due to the
company's "higher responsiveness and better execution." Jefferies is
particularly upbeat on AMD because of Ryzen, AMD's new desktop chip, and its
upcoming Zen-based Naples server chip.

Advanced Micro Devices, Inc.’s 50-day
moving average is $13.77 and its 200-day moving average is $10.01. Advanced
Micro Devices, Inc. has a 12 month low of $2.60 and a 12 month high of $15.55.
The firm’s market cap is $12.90 billion.

AMD hit a multiyear high of $15.55 on Feb.
28 before dipping more than 20% to test support at its 50-day moving average.
Support held, and while the shares fell to a low of $12.38 on March 6, they
were able to rebound to close the day at $13.04.

That was the technical signal that gives
the view that AMD is now a potential buy.

AMD has shown a marked change in trend
levels over the course of recent market activity. Based on recent activity
surrounding both the 50 and 200 SMAs, there’s been a marked trend created which
can be described as bullish.

Influencing
Factors to Consider

Advanced Micro Devices, Inc. announced, in
conjunction with game developers Stardock and Oxide Games, the completion of
initial optimization of “Ashes of the Singularity” for AMD Ryzen desktop
processors resulting in significant performance increases. The popular game
title, which initially launched one year ago, demonstrates significant
performance increases in game play and an up to 30 percent increase in “Average
Frames Per Second All Batches” in-game benchmark performance, placing AMD Ryzen
7 1800X in elite performance levels for the game.1 Stardock and Oxide Games are
premier participants in the AMD Ryzen game development program that spans
numerous significant game development houses and titles.

On Amazon.com (NASDAQ:AMZN), Ryzen 7 takes
three out of the 20 top spots in bestselling CPU processors. 91 percent of the
reviews from customers buying the 1700 model, which includes an LED Cooler,
ranked the chip a perfect 5 out of 5 stars.

Targeting the mainstream market, AMD will
release Ryzen 5 on April 11; the low price range will very likely result in AMD
taking market share from Intel.

AMD continues developing the Ryzen line.
The company has a large team of engineers working on the second generation. Led
by Mike Clark coordinating the entire global team, future Ryzen chips will be
manufactured on a smaller process.

AMD will likely grow its GPU market share
as more notebooks offer solutions built on the Polaris architecture. Last
quarter, AMD launched the Radeon Pro 400 mobile GPU. Apple, Inc. (NASDAQ:AAPL)
chose this chip in its latest high-end MacBook Pro. PC Ultrabook manufacturers
may start offering this solution in the months to come.

AMD's revenue will increase due to product
differentiation. AMD will bring several accelerators to support heterogeneous
computing. In the era of MI, there will be a multitude of workloads and
specific accelerators will support specific workloads. These accelerators will
actually blend various microprocessor and graphics technologies for making
heterogeneous computing a success.

As well, Advanced Micro Devices, Inc.‘s
stock had its “buy” rating reaffirmed by Bank of America Corp in a research
report issued on Friday. They currently have a $16.50 target price on the
semiconductor manufacturer’s stock. Bank of America Corp’s price objective
would indicate a potential upside of 20.57% from the stock’s previous close.

Several
brokerages have issued reports on AMD….

Susquehanna Bancshares Inc raised their
price objective on shares of Advanced Micro Devices from $9.00 to $12.00 and
gave the stock a “neutral” rating in a research report on Monday, March 20th.

Jefferies Group LLC raised their price
objective on shares of Advanced Micro Devices to $16.00 and gave the stock a
“buy” rating in a research report on Monday, March 20th.

Canaccord Genuity raised their price
objective on shares of Advanced Micro Devices to $17.00 and gave the stock a
“buy” rating in a research report on Thursday, March 9th.

Rosenblatt Securities reissued a “buy” rating
and set a $16.50 price objective on shares of Advanced Micro Devices in a
research report on Sunday, March 5th.

Seventeen analysts have rated the stock
with a hold rating, ten have assigned a buy rating and one has issued a strong
buy rating to the company. Advanced Micro Devices presently has an average
rating of “Buy” and a consensus target price of $12.57.

Several
hedge funds have recently modified their holdings of the company……

Oregon Public Employees Retirement Fund
boosted its stake in shares of Advanced Micro Devices by 3.7% in the third
quarter. Oregon Public Employees Retirement Fund now owns 222,162 shares of the
semiconductor manufacturer’s stock worth $1,535,000 after buying an additional
7,894 shares during the period.

Creative Planning boosted its stake in
shares of Advanced Micro Devices by 61.6% in the third quarter. Creative
Planning now owns 71,178 shares of the semiconductor manufacturer’s stock worth
$492,000 after buying an additional 27,125 shares during the period.

Harvey’s
Options Volatility Indicator

Conclusion

In the quarters that follow, AMD will
report strong Ryzen and Polaris sales growth. Ryzen 5's release and the
imminent announcement for Vega will give the stock a lift.

With the better visibility into Ryzen 7 and
the imminent Ryzen 5 launch on April 11, a peerless leadership strategy -- CEO
Lisa Su's plan of matching product performance with Intel, at cheaper price
points has worked – and Advanced Micro Devices' ability to balance pricing and
competitive performance, has been fairly impressive and will help insure further growth.

Therefore, based on the facts above, and
Harvey’s Options Volatility Indicator, the following option trade is recommended…..

** OPTION TRADE: Buy the AMD
APRIL 21 2017 14.000 call at approximately $0.75. Place a pre-determined sell
at $1.50.

Note: No protective stop losses
added -- but if you wish to do so make it $0.30.

”Success is simple. Do what's right, the right way, at
the right time.”